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Home My WebLink AboutORD 5662CITY OF RENTON, WASHINGTON ORDINANCE NO. 5662 AN ORDINANCE OF THE CITY OF RENTON, WASHINGTON, AMENDING TITLE V (FINANCE AND BUSINESS REGULATIONS) OF ORDINANCE NO. 4260 ENTITLED "CODE OF GENERAL ORDINANCES OF THE CITY OF RENTON, WASHINGTON", BY ADDING A NEW CHAPTER 23, "EXAMINATIONS, RECORDS PRESERVATION, SUCCESSOR LIABILITY, AND PUBLIC DISCLOSURE" CLARIFYING THE ADMINISTRATIVE SERVICES ADMINISTRATOR'S AUTHORITY TO EXAMINE AND AUDIT RECORDS; ALSO ADDING SUCCESSOR LIABILITY AND PUBLIC DISCLOSURE. THE CITY COUNCIL OF THE CITY OF RENTON, WASHINGTON, DOES ORDAIN AS FOLLOWS: SECTION I. Title V (Finance and Business Regulations) of Ordinance No. 4260 entitled "Code of General Ordinances of the City of Renton, Washington", is hereby amended by adding a new chapter 23, entitled "Examinations, Records Preservation, Successor Liability, And Public Disclosure" to read as follows: CHAPTER 23 EXAMINATIONS. RECORDS PRESERVATION. SUCCESSOR LIABILITY. AND PUBLIC DISCLOSURE SECTION: 5-23-1 Applicability 5-23-2 Definitions 5-23-3 Examination Of Claims Bv Citv Officials 5-23-4 Records To Be Preserved - Examination - Estoppel If Records Or 5-23-5 Business Premises Are Not Preserved Or Made Available Taxpayer Quitting Business - Liabilitv Of Successor 5-23-6 Public Disclosure - Confidentiality - Information Sharing 5-23-7 Limitation on Actions 5-23-1 APPLICABILITY: 1 ORDINANCE NO. 5662 This Chapter applies to every Chapter in Title V ofthe Renton Municipal Code. In the event of a conflict between this Chapter and the specific requirements contained in some other portion of Title V, the requirements enunciated in that other portion of Title V shall prevail. 5-23-2 DEFINITIONS: A Examination is defined as any inspection, audit, review or evaluation of records, bills, invoices or related items for tax or fee payments, refunds, or budget concerns. Record is defined as broadly as possible, including but not limited to files and notations, books, papers, invoices, vendor lists, inventories, stocks of merchandise, and other data including federal and state tax returns and/or regulatory reports, in electronic and other accessible, readable formats. 5-23-3 EXAMINATION OF CLAIMS BY CITY OFFICIALS: All claims, demands, or request for money, payment, reimbursement or refunds of any bill, tax, or invoice presented to the Citv shall first be examined by the appropriate administrative official. If the official determines a claim to be just, due and unpaid he or she shall so indicate to the Administrative Services Administrator or his/her designee, and shall further indicate the fund from which payment is to be made and whether the appropriate funds are available. 5-23-4 RECORDS TO BE PRESERVED - EXAMINATION - ESTOPPEL IF RECORDS OR BUSINESS PREMISES ARE NOT PRESERVED OR MADE AVAILABLE: 2 ORDINANCE NO. 5662 A. Every tax or fee-payer under this Title shall keep, maintain and preserve, all records for eight (8) years after filing a tax return, as such records may be necessary to determine the amount of any fee or tax for which the person may be liable. B. All records identified in subsection A above shall be open for examination by the Administrative Services Administrator or his/her designee with reasonable notice. Every tax or fee-payer's business premises shall be open for inspection or examination by the Administrative Services Administrator or his/her designee with reasonable notice. C. If a tax or fee-payer does not keep the necessary records within the city, it shall be sufficient if such tax or fee-payer: 1. produces within the city such records as may be required by the Administrative Services Administrator, or 2. bears the cost of examination by the Administrative Services Administrator or his/her designee at the place where such records are kept; provided, that the tax or fee-payer electing to bear such cost shall pay in advance to the Citv of Renton the estimated amount thereof including round-trip fare, lodging, meals and incidental expenses, subject to adjustment upon completion ofthe examination. D. Any tax or fee-payer who fails, or refuses the City's request to provide or make available any or all records, or to allow examination of any or all of the tax or fee-payer's business premises, shall be estopped from questioning in any 3 ORDINANCE NO. 5662 appeal or legal proceeding, the correctness of any assessment of taxes made by the Citv for any period for which such records have not been provided, made available or kept and preserved, or in respect of which examination of the business premises has been denied. The Administrative Services Administrator or his/her designee is authorized to determine the amount of the tax or fees payable bv obtaining facts and information upon which to base the estimate of the tax or fees due. 1. Such fee or tax assessment shall be deemed prima facie correct and shall be the amount of tax owing the City by the taxpayer, and 2. The Administrative Services Administrator shall notify the tax or fee- payer by mail the amount of tax so determined, together with any penalty, interest, and fees due; the total of such amounts shall thereupon become immediately due and payable. 5-23-5 TAXPAYER QUITTING BUSINESS - LIABILITY OF SUCCESSOR: A Whenever any taxpayer quits his or her business, sells out, exchanges, or otherwise disposes of his or her business or stock of goods, any tax payable hereunder shall become immediately due and payable. Such taxpayer shall, within ten (10) days thereafter, make a return and pay the tax due. B^ Any person who becomes a successor shall become liable for the full amount of any tax owing. The successor shall withhold from the purchase price a sum sufficient to pay any tax due to the Citv from the taxpayer until such time as: 4 ORDINANCE NO. 5662 ii The taxpayer shall produce a receipt from the Citv showing payment in full of any tax due or a certificate that no tax is due; or 2i More than six (6) months have passed since the successor notified the Administrative Services Administrator of the acquisition and the Administrative Services Administrator has not issued and notified the successor of an assessment. C Payment of the tax by the successor shall, to the extent thereof, be deemed a payment upon the purchase price. If such payment is greater in amount than the purchase price, the amount of the difference shall become a debt due such successor from the taxpayer. Notwithstanding the above, if a successor gives written notice to the Administrative Services Administrator of the acquisition, and the department does not within six (6) months of the date it received the notice issue an assessment against the taxpayer and mail a copy of that assessment to the successor, the successor shall not be liable for the tax. 5-23-6 PUBLIC DISCLOSURE - CONFIDENTIALITY-INFORMATION SHARING: Except as hereinafter provided, it shall be unlawful for the Citv or any official, employee, agent, or representative to disclose any facts, information, or record contained in any return filed by any taxpayer or disclosed in any examination of the taxpayer's records; except where such disclosure or examination is authorized or required by the Public Records Act, RCW 42.56, as it now exists or is hereafter amended, or other state or federal law. The foregoing, however, 5 ORDINANCE NO. 5662 shall not be construed to prohibit the City or any official, employee, agent or representative from: A Providing such facts or information as evidence in any appeal or hearing before the hearing examiner or in any court action involving any tax, interest or penalty imposed pursuant to RMC Title V or involving a violation of the provisions of this Title. B± Giving such facts and information to the taxpayer or his duly authorized agent. C Publishing statistics so classified as to prevent the identification of particular taxpayers or their returns or reports or items. D. Giving such facts or information to any employee ofthe City, the Mayor and/or Citv Council, or to any City Council committee or subcommittee dealing with matters of taxation, revenue, trade, commerce, and examinations. E. Permitting the taxpayer's records to be examined by a Citv officer, agent or employee. F. Giving such facts, information, or records to the Federal Internal Revenue Service, State Department of Revenue, and tax or law enforcement officials of any federal or state agency or municipal subdivision of this state, but only if substantially similar privileges are granted to the proper offices ofthe City. 5-23-7 LIMITATION ON ACTIONS: A. An action to assess, correct an assessment, or recover monies owed or unpaid, taxes, penalties or interest shall be commenced within six (6) years. 6 ORDINANCE NO. 5662 EL The six (6) years is determined from when an audit commenced or when the monies owed or unpaid, penalties or interest became due, whichever is later. C The Citv may commence an action beyond the six (6) year period against any person who: L Has committed fraud or a material misrepresentation related to the business or profession, its operation, its employees, its revenue, its inventory or in any other material way; 2. Has waived the six (6) year limitation in writing: or 3. Has not or is not registered to operate a business in the Citv of Renton or has not filed a tax return as required in Title V. SECTION II. This ordinance shall be effective upon its passage, approval, and thirty (30) days after publication. PASSED BY THE CITY COUNCIL this 4th day of June , 2012. Bonnie I. Walton, City Clerk APPROVED BY THE MAYOR this 4th day of June , 2012. Denis Law, Mayor 7 ORDINANCE NO. Approved as to form: Lawrence J. Warren, City Attorney Date of Publication: 6/8/2012 (Summary) ORD:1762:6/l/12:scr * 8